Dáil debates

Wednesday, 20 November 2019

Finance Bill 2019: Report Stage (Resumed)

 

7:20 pm

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

Deputy McGrath raised this issue on Committee Stage. The proposed change to the WLTP was something with which elements in the motor industry had many concerns, particularly if it was going to be combined with the changes we are now making in carbon pricing. It is fair to say there is a possibility of a mismatch for a period of time but, of course, for diesel vehicles people will also pay the higher level of carbon price with regard to the diesel to be purchased for those vehicles.

With regard to why I will not accept the amendment, and I appreciate why the Deputy has tabled it, the key reason is this change was so well flagged. Anybody who had followed the debates that took place, in particular on Committee Stage on the previous Finance Bill, would have been aware this change was coming. Last year, I indicated I would give very serious consideration to this change. They were due to expire and we had much debate regarding the changes that were due to take place at that point. The tax strategy group paper after that debate set out very clearly the environmental rationale as to why a further extension was not merited. If I were to defer this change to 1 February it would ensure that one third of new cars sold in a particular year were not covered by the change. In good conscience that could not be a change we make. I accept the point made by Deputy McGrath but in light of how well flagged and ventilated the debate on this issue was, I ask the Deputy to consider withdrawing it.

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